Defined Contribution Retirement Plan Committee
What are the responsibilities of the Retirement Plan Committee?
The Defined Contribution Retirement Plan Committee assists with guidance and oversight of the investment options offered through Purdue’s defined contribution and voluntary savings retirement plans. Investment options are selected to allow participants to diversify their accumulated retirement balances and build portfolios that reasonably span the risk/return spectrum. The committee's role is to advise Purdue's assistant treasurer in matters related to investment options, including the following:
- Develop and review retirement plan investment policies
- Recommend the overall number and types of options to be offered to participants (including the default option for participants who fail to make investment elections)
- Review performance of each investment option
- Review and monitor the costs associated with the plans
Minutes of committee meetings
Who serves on the Defined Contribution Retirement Plan Committee?
- Assistant treasurer of Purdue University
- Vice president for Human Resources
- Senior vice president and treasurer of the Purdue Research Foundation
- University chief investment officer
- A vice chancellor from the Calumet, Fort Wayne or North Central campuses
- Faculty Senate representative
- Clerical and Service Staff Advisory Committee (CSSAC) representative
- Administrative and Professional Staff Advisory Committee (APSAC) representative
- Purdue University Retirees Association (PURA) representative
- Director of compensation and benefits (ex officio)
- Director of investment research and analysis (ex officio)
What is the best way for me to communicate with the Defined Contribution Retirement Plan Committee?
If you have suggestions or comments for the committee, please send a note to RetirementPlanCommittee@purdue.edu.
Why was the Defined Contribution Retirement Plan Committee established?
The Defined Contribution Retirement Plan Committee began as a result of the Retirement Plan Review Task Force of 2009. The task force recommended establishing an internal committee to select investment options for each tier within the retirement plan and to provide retirement plan oversight.
Federal regulation has increased the responsibilities of employers as retirement plan sponsors and requires employers to take a more active role in administering their retirement plans. The Defined Contribution Retirement Plan Committee includes members with investment expertise, administrators responsible for Purdue benefit programs, and faculty and staff stakeholders participating in the retirement plans.
Goals of the Defined Contribution Retirement Plan
The Defined Contribution Retirement Plan Committee monitors the operation of the program in relation to the goals set forth by the 2009 Retirement Plan Review Task Force. It is Purdue University's expectation to continue to provide a well-managed and competitive retirement plan that provides:
- An inclusive set of appropriate investment choices to meet the needs of a diversified faculty and staff
- Financially sound and reputable financial investment partners
- High-quality service and expertise in the financial industry, balanced with low to reasonably priced fees
- Plan sponsor support and federal compliance through a single recordkeeper
What criteria are considered in making changes to the fund lineup?
The criteria for finding and evaluating mutual funds for the defined contribution and voluntary savings retirement plans lineup includes, but is not limited to:
- Low-cost expense ratios
- Category performance
- Manager continuity
- The fund's track record
What happens if I am invested in a fund that is removed from the fund lineup?
When a fund in the lineup no longer meets the criteria of the Purdue retirement program, the Defined Contribution Retirement Plan Committee works with the University Investments office to identify a replacement fund in the same category. Fidelity will be directed to freeze the assets in the fund that is being replaced as of the effective date set for the change. Future contributions will be redirected to the newly identified fund. Any balances in the frozen fund will be transferred to the new fund.
Participants will be notified ahead of the change and invited to update their contributions and distributions, if they wish. Because the self-directed window (SDW) provides a means for a participant to invest in a broader range of funds, it would be possible for plan participants to use the SDW option to access the fund that was eliminated from the lineup.